Life insurance brokers are paid a % of the commissionable premium of the life insurance policies they place. Each life insurance carrier and product pays differently, and agents are paid on different schedules set by the general agencies they use. For Term Life insurance, the commission is usually paid only on the first year premium, and if the policy lapses before the year ends, the broker may lose some or all of the commission. For Permanent policies and some Term policies, a small residual commission is paid to agent for years after the first year's commission is paid.
Of course, some agents work for brokers and are simply paid a salary.
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Of course, some agents work for brokers and are simply paid a salary.